Hooker Furnishings 2026 Q1 Earnings Narrowed Losses as Net Income Improves 25.4%

Hooker Furnishings (HOFT) reported its fiscal 2026 Q1 earnings on June 13th, 2025. The company saw a decrease in total revenue by 8.8%, totaling $85.32 million, compared to $93.57 million in the previous year. Despite this, the company successfully narrowed its net loss to $3.05 million, a 25.4% improvement from $4.09 million last year. The company continues to focus on cost-saving measures, projecting $25 million in annual savings by fiscal 2027.

Revenue
Hooker Furnishings reported a total revenue decline of 8.8% for the first quarter of fiscal 2026, reaching $85.32 million compared to $93.57 million the previous year. The revenue from the Hooker Branded segment reached $37.11 million, while the Home Meridian segment contributed $18.81 million. Meanwhile, the Domestic Upholstery segment generated $28.91 million, with other segments bringing in $484,000, culminating in the consolidated revenue figure of $85.32 million.

Earnings/Net Income
For the first quarter of fiscal 2026, Hooker Furnishings narrowed its earnings per share loss to $0.29 from a previous $0.39 in fiscal 2025, marking a 25.6% improvement. The net loss was reduced to $3.05 million from $4.09 million, reflecting the company's effective cost-management strategies. The EPS improvement signifies a positive trajectory towards profitability.

Post-Earnings Price Action Review
The post-earnings strategy of purchasing Hooker Furnishings stock when revenues exceed expectations has underperformed significantly. With a return of -47.11%, it lagged behind the benchmark return of 32.23%, resulting in an excess return of -79.34%. The compounded annual growth rate stood at -15.58%, and the strategy faced a high maximum drawdown of -71.97%, highlighting considerable risk. The Sharpe ratio of -0.45 further illustrates that the risk taken did not yield sufficient reward, suggesting a need for strategic reevaluation in capturing market opportunities.

CEO Commentary
Jeremy R. Hoff, CEO & Director, emphasized the company's continued focus on stabilizing and improving performance in a challenging environment. He highlighted strategic initiatives, such as the "Living Your Way" modular upholstery program and other cost-saving measures, which have brought significant savings. Despite external challenges, Hoff expressed cautious optimism due to a notable increase in orders for Hooker Legacy brands, driven by expanded merchandising strategies.

Guidance
Hooker Furnishings projects achieving approximately $25 million in annualized savings by the next fiscal year. The company expects to realize around $14 million in savings for fiscal 2026, with Phase 2 initiatives impacting Q4 by $3.5 million. CEO Hoff stated that the company is poised for growth and expects stronger performance in the second half of the year compared to the first.

Additional News
Recently, Hooker Furnishings announced the expansion of its Vietnam warehouse, which has successfully reduced lead times from six months to four to six weeks. This strategic move aims to enhance product flow and margin potential. Additionally, the company continues its commitment to shareholder returns with uninterrupted dividend payments, extending a 50-year track record. The firm's disciplined capital allocation and improved liquidity position further underscore its strategic focus on long-term profitability and operational efficiency.